The text from CNBC
TRUE RELIGION APPAREL INC
• The Los Angeles company makes premium denim jeans, shirts, jackets and skirts.
• Its products are sold under the True Religion brand in North America, Europe, Japan, Hong Kong and Russia. The merchandise is carried in boutiques and sold by such retailers as Barneys New York, Bergdorf Goodman, Neiman Marcus and Saks Fifth Avenue.
• "They've done a great job expanding beyond just being a jeans maker," Cuellar said. "They've gone into jackets; they've come out with a lot of new materials, like cotton twills, corduroys. I think they're really establishing themselves as a lifestyle brand."
• The company boasts of "celebrity enthusiasts" for its denim, including David Beckham, Heidi Klum, Bruce Willis, the cast of "Desperate Housewives" and others. Its denim line will be worn by stars in upcoming movies, the company said, including Jessica Simpson in "Dukes of Hazzard"; Selma Blair in "The Fog"; and Heather Graham in "Cake."
• Denim pants were the best-selling category of men's apparel in 2004, according to STS Market Research of Cambridge, Mass. Expenditures on men's jeans rose 9% last year to $6.1 billion.
• The high-end denim trend began in 2000 with the arrival of Seven jeans. As jean prices have skyrocketed, there's talk of a "denim bubble" which could burst. But many retailers expect the denim craze to continue this fall.
• "The stock's traded sideways over the last four months because of concerns on the Street about a glut of denim," Cuellar said. "But we really think there's a lot more growth to come."
• Cuellar doesn't own the stock. He has a medium risk rating on True Religion Apparel and a six-month price target of $20. He'd consider selling if shares fall below $10.
